Sainsbury’s boss Simon Roberts has urged the government to slash business rates, warning that a failure to act could lead to over 17,000 shop closures over the next decade.
Roberts has called for a rate cut of 20% to prevent shops closing and tens of thousands of retail jobs being lost by 2033-2034, in an article in The Times co-authored with Usdaw general secretary Paddy Lillis.
The pair argue a rate cut would not only protect jobs but also, through revitalising high streets, actually boost government tax revenues by as much as £70m per year.
“The no. 1 barrier to growth in our industry is the outmoded business rates system,” Roberts and Lillis wrote.
“Successive governments have promised reform but have only ever tinkered around the edges. The result? Shops closing, jobs lost, economic growth stunted.”
The article appeared after a report by Development Economics found that the planned 2024/25 business rates rise will cost businesses £1.6bn in its first year, with more than a quarter of that burden falling on the retail sector.
“All responsible retailers want to pay their fair share of tax, but the current business rates system has become an enormous burden on our industry,” Roberts said.
“It is no longer fit for purpose… It has failed to keep pace with major changes in how customers are now shopping and how much our retail industry has changed over the last decade,” he added.
In its election manifesto, Labour pledged to “replace the business rates system, with a new system that will level the playing field between the high street and online giants”.
However, the new Labour government has yet to articulate exactly what that reform will look like.
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